Special Reports

Stressed university students say working part time affects
grades: RBC poll

Three-quarters of students don't use a budget and 60 per
cent expect to graduate with debt

TORONTO, August 16, 2010 — The majority of post-secondary
students (57 per cent) say they plan to work during the school
year in order to help pay the bills, according to an RBC/Ipsos
Reid poll. Three-quarters of students (77 per cent) believe
working part-time during school will impact their grades,
while six-in-10 expect to graduate with debt and 74 per cent
don't use a budget.

"The student experience brings new found responsibilities
like keeping good grades, living on your own and balancing
a budget which can be very stressful," said Kavita Joshi,
director, Student Banking, RBC. "Proper saving habits
can lead to working fewer hours, thereby freeing up more time
for studying and enjoying the university or college experience."

The survey found that debt management and budgeting are challenging
for students, with just half regularly monitoring where their
money is going (52 per cent).

Some key survey findings include:

Debt-free - Students who believe they will graduate
debt-free are more likely to rely on their parents (46 per
cent) for financial assistance.

Every penny counts - Half of students (51 per cent)
say they will look for a job or work more if money is tight.
Over one-third (37 per cent) feel that having a job wouldn't
be enough and that they would also have to cut back on expenses.
Dining out (54 per cent), shopping (48 per cent) and entertainment
(45 per cent) are expenses most likely to be cut.

Worrying about money - Two-thirds of students (66
per cent) feel that worrying about money will have an impact
on their grades.

Financial sources - Students who say they will
work during school plan to rely on their summer savings
(49 per cent), scholarships and bursaries (40 per cent)
and the bank of mom and dad (39 per cent) to support themselves.

Relying on parents - Students who do not plan to
work part-time are more likely to rely on their parents
(44 per cent) for financial support.

Working more - 59 per cent of students who are
already planning to work would consider looking for more
hours or another job if money was tight.

"Managing your budget can be overwhelming, especially
if you're new to it," added Joshi. "Online financial
management tools make it easier to track where your money
is going and how much you are spending, leaving enough money
in your budget to enjoy the student social life."

Joshi offers three key tips to help students stretch their
dollars:

1) Prepare a budget and manage your finances - a budget
will help you live within your means and avoid unnecessary
debt. myFinanceTracker is a new online customizable financial
management tool that will help keep tabs on your monthly spending
so you know exactly where your money is going and how to budget
properly. RBC online banking clients can find access to myFinanceTracker
at www.rbcroyalbank.com/myfinancetracker.

2) Take control - identify all of your expenses and
assess how much you're actually spending. Knowing where your
money goes makes it easier for students to make sound financial
decisions. Tools such as RBC's Better Student Life website
(about money management) and Student Budget Check (calculates
the money you need to get through the school year, based on
your spending) can help with managing your money (www.betterstudentlife.ca).

3) Know your financial options - explore all financial
options available including bursaries, student bank loans
and scholarships. RBC awards over $300,000 in scholarships
each year. To learn more about the RBC scholarships, visit
www.rbcroyalbank.com/scholarships.

The RBC Student Finances Study was conducted by Ipsos Reid
between June 24 and June 29, 2010. This online survey of 531
Canadian post-secondary students, under the age of 25, who
are either returning to post-secondary school (376) or intending
to start at post-secondary school (155) in September 2010,
was conducted via the Ipsos I-Say Online Panel, Ipsos Reid's
national online panel. No weighting of the final sample was
done as we assume that the respondents are a random sample
of Canadian students. With a sample of this size, the results
are considered accurate to within ±4.3 percentage points,
19 times out of 20. The margin of error within sub-groups
will be larger.